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You do know other countries run their banking through their post office some too?
I mean this isnt a new or unique idea.
But hey if you want to carry the banking industries water, feel free.
but having the government do it would not only put thousands of people out of work, but also would make it totally inefficient as it is now a government ran program.
no, not all government programs are inefficient, but most of them are.
the only issue i have is the interest rates being charged. it used to be that more than 30% interest was considered usury and was illegal. today however there is no more usury rates.
bank have different regulations to follow than the payday loan companies. and they cannot charge the same interest rates that payday loan companies can.
And they have no interest in getting those regulations changed. Nor does the government seem to want to solve the problem by loosening such regulations.
Lenders are LAZY SLACKERS looking for easy money. Most borrowers pay timely and their real risk does not justify 400% APR, but payday lenders are unable or unwilling to make any differentiation between say 36% and 400% APR.
Also the exorbitant interest rates allow lenders to pad expenses; repeat borrowers - and a HIGH proportion of borrowers are frequent repeat customers - are processed sequentially for time-consuming new loans when many could be served more efficiently with an equal revolving line of credit.
Are any of these companies on the NYSE? Sounds like a good investment opportunity.
In reality, boys and girls, when excess profits exist suppliers jump in until those profits are lowered significantly...unless government restricts supply.
Let the big banks enter the field. Say no to taxpayer subsidized (translation: includes me ) loans.
The federal government says payday lenders charge to much but they are unable to enter the business even though they have the existing infrastructure and break even. If profits are so excessive why must this be subsidized by me the taxpayer?
And they have no interest in getting those regulations changed. Nor does the government seem to want to solve the problem by loosening such regulations.
i would not be surprised if the big banks were supporting the payday lenders, either through partial ownership, buried in many levels of shell corporations, or with contracts to these payday lenders.
but having the government do it would not only put thousands of people out of work, but also would make it totally inefficient as it is now a government ran program.
no, not all government programs are inefficient, but most of them are.
The post office has lost money in some years even when you don't include the pension costs. The pension costs are what fiscal responsibility looks like, the bread and butter of the post office has been their monopoly on first class mail. That has become less of a factor and will continue to decline. They now have to compete against private industry. As their revenue declines because of less business the revenue for the pension will decline, automation requires fewer employees thus fewer employee contributions. 40 years from now you will thanking those that had the foresight to implement these policies. The alternative is the escalating and out of control expense being experienced by state and local governments caused by pensions many of them are now experiencing.
They will meet that 75 billion required by the GOP. They are ready and in better shape as the largest package handler in the nation.
They are still better then the private firms as they deliver to the entire nation.
You started a post about pay day lenders, are you aware of some of the abuses. They stop just short of loan sharks and they take advantage of people at the bottom.
They are still better then the private firms as they deliver to the entire nation.
They have to, they have a monopoly on first class or "when it gets there" mail. If they don't do it no one else legally can. The only thing private services can offer is expedited service. When you are in the delivery business the way you make money is having an area saturated with customers. With 100% saturation there is no way these private companies should even exist especially considering the post office only has to remain revenue neutral.
Are any of these companies on the NYSE? Sounds like a good investment opportunity.
In reality, boys and girls, when excess profits exist suppliers jump in until those profits are lowered significantly...unless government restricts supply.
Let the big banks enter the field. Say no to taxpayer subsidized (translation: includes me ) loans.
The federal government says payday lenders charge to much but they are unable to enter the business even though they have the existing infrastructure and break even. If profits are so excessive why must this be subsidized by me the taxpayer?
Now in a world of 400% payday loans, many lenders have entered the market - effectivbely cannibalizoing each other's market share - but I haven't seen rates come down.
A 300% lender could theoretically dominate the market but I don't see those lenders so I assume that every existing lender is happy with profits as they are.
Again, payday lenders pad their expenses in order to make their profits look less attractive to regulators and prospective competitors. I really don't see why these lenders have to spend $10 (or whatever it costs them) to originate a new loan every single time for repeat customers.
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